4 Tips to Protect Yourself From Risk
Cyber liability exposure is not limited to attacks on individuals, retail stores, restaurants, or government entities. You are at risk for cybercrime if you store information in a combination of two or more of the following: name, social security number, driver’s license number, personal health information, credit card number, bank account number, date of birth.
Let's calculate the total cost of your cyber attack.
Average cost per individual whose data was breached:
$188
Estimated number of individuals affected (renters or past applicants):
500
Total cost:
$94,000.00!
From an Insurance perspective, cyber risk and data breaches are quickly becoming some of the leading exposures in the rental property industry. As technology evolves so does the risk associated with it. Many of us view cyber risk as something that only large corporations or the random unlucky individual falls victim to. While it is comforting to chalk that up to the truth, the reality is that all of us are at risk for cybercrime.
Some of the leading targets for data breaches are apartment owners and property managers. One reason for this is due in part to the fact that these individuals handle large quantities of sensitive information. Consider the amount of personal information collected on credit reports, rental applications, as well as on leasing and rental agreements.
If you are an apartment owner, property manager, investment property landlord, etc. ask yourself these questions:
How many new renters am I collecting sensitive information from each year?
How long am I storing sensitive information for from past renters?
Devising a plan to mitigate the risk associated with a data breach is crucial for investment property owners.
1. Begin by familiarizing yourself with state laws that mandate notification protocol in the event of a cyber-attack. This is important because the fines associated with negligent notification procedures can quickly add up to hundreds of thousands of dollars.
2. Educate your employees on the importance of diligent safety procedures. Make sure passwords are frequently changed and that they are comprised of complex codes.
3. Eliminate outdated or unnecessary information. Minimize the amount of sensitive information that is stored (i.e. past renter’s personal info, etc.).
4. Put an insurance policy in place! Cyber liability policies are a comprehensive and cost-effective solution to the threat of data breaches and cyber-attacks. Not only can these policies account for lost or stolen funds, but they can also cover notification fees and legal fees associated with cyber-attacks. When in doubt, transfer the risk and be prepared.
Liability, in general, can be limitless. Don’t risk your tenant’s sensitive information. Implement an insurance policy that has you covered. For more information on customizing a cyber liability policy specific to your investment property or business needs call your local Alliance Insurance agent.
Cyber insurance is a very cost effective add-on to current policies and can be purchased separately if needed as well. Reach out by filling out the form below and we'll connect you with an expert that will build a policy that works for your business.